The Tweet: Shares of Tesla dropped more than 12% Friday after Tesla CEO Elon Musk tweeted that the company’s shares are priced “too high.”
The company just days before reported a strong quarter, sending shares higher. Tesla stock was trading at 760.23 just before Musk tweeted and then fell to a session low of 717.64, before falling even more.
Musk’s tweet comes almost a year after he reached a settlement agreement with the U.S. Securities and Exchange Commission that gave him the freedom to use Twitter —within certain limitations — without fear of being held in contempt for violating an earlier court order.
Under the agreement, Musk can tweet as he wishes except when it’s about certain events or financial milestones. In those cases, Musk must seek pre-approval from a securities lawyer.
It’s unclear if Musk had that approval for his tweet on Friday, but it sure cost him. If Musk thought Tesla shares were priced too high, his tweet took care of that!